Issue

Recommendation

Background & Context

DD075 - Future system to support Treasury activities

CR0003 - Transition Treasury from Quantum to S/4HANA

The above KDD and Change Request were approved to bring Treasury activities into the scope of the SyWay project,

A decision in now required as to when the deploy the Treasury modules within the SyWay deployment Groups.  There are currently two official deployment groups, Group 1 and Group 2.  

Assumptions

SyWay deployment for Release 4 will be execute in two groups, Group 1 & Group 2.   Multiple group go-live add significant complexity in regards to Treasury deployment. 

Constraints

The deployment decision needs to consider the below aspects.

Systems

Quantum: is the current Treasury systems

PI2:  The treasury accounting and also the IHB reside in this separate system.  The company codes is this system are 2232 & 4044.

PF2: The legal entity for Treasury and IHB is Syensqo SA, and this entity resides in PF1. The relevant company code in this system is 2002.  Local Statutory reporting is performed from this entity\system. 

WP2: For Treasury exposure management, the non IHB exposures for the entities within WP2 are required.

BFC:  for Consolidation purposes, Syensqo SA (2002), send packages to BFC for Consolidation

The Syensqo SA Entity

The Syensqo SA entity currently resides in PF2, and this entity is schedule to go-live in Group 1.

Local Statutory Reporting for this entity is performed in 2002 \ PF2.

Treasury and the IHB accounting is perform in this entity

Relevant non Treasury Activities also occurs in this entity, including Head Office activities and Intercompany service billing which 1) send invoices to WP1 2) Intercompany Billing SyWay design will change, and will also need to send Invoices to Multiple systems in the interim (between Group 1 and Group 2 Go-Lives.

This add complexity to the deployment approach for Treasury, which is one part of th Syensqo SA entity.

Impacts

KDD070 - Deployment Approach for In-House Bank (IHB)

Extract from KDD070

Option E: Defer the deployment of In-House Bank functionality for all GBUs and Entities until after the second group go-live.

This Conceptual Design recommendation will be re-assessed during Detailed Design when more information will be available to support a decision. Options B, C, and E will form part of the reassessment. Any long lasting impacts on S/4HANA from the legacy interim IHB requirements will also be considered at this time. 

Treasury and In-House bank and heavily integrated, as such the deployment timing of the In-House Bank comes into consideration.

For the purpose of this KDD, IHB go-live will be referred to as Group 3.  Note: there is no official Group 3

Entity 2002 Syensqo SA (ECC Company code 2002)

This entity resides in PF1, and hold the accounting for both Treasury and the In House Bank.

This entity is holds the accounting for the non Treasury activities, for example head office.

Accounting entries from the PI1 system are interfaced into 2002 in PF1 to produce statutory accounts, and also interfaced to BFC from PF1.

Entity 2002 Syensqo SA resides in PF1 and hence in schedule to go-live with Group 1.

Analysis conducted for this KDD highlights that it is easier (less interim interfaces) to deploy entity Sysensqo SA with the rest of Treasury and IHB

Business Rules

There are no relevant business rules at this point in time.

Options considered

Numerous options were assessed, due to the significant integration of Treasury, with;

1) IHB

2) The existing PI1 system

3) Accounting within the Sysensqo SA entity residing in PF1. 

The recommnedation proposed is for the Syensqo SA entry to move in Group 2.

Option A: Deploy with Group 1

Option B: Deploy with Group 2

Option C: Deploy with IHB after Group 2

Option D: Deploy after Group 2 along with IHB.

Evaluation

Criteria	Deploy	Option A	Option B	Option C	Option D	Option E	Option F	Option G	Option A	Option B	Option C	Option D	Option E	Option F	Option G
	Treasury	Group 1	Group 1	Group 2	Group 2	Group 2	Group 2	Group 3
	Syensqo SA	Group 2	Group 1	Group 2	Group 1	Group 2	Group 1	Group 1
	IHB	Group 3	Group 3	Group 3	Group 3	Group 2	Group 2	Group 3
Cash Management (CM)		IHB, where majority of cash resides, still in PI1, interim interface req'd, with large amount of data Group 1 entities in S4 and visible in CM Group 2 entities not in S4, interim interfaced req'd from WP1 to S4 with large amount of data.	As Option A As Option A	IHB, where majority of cash resides, still in PI1, interim interface req'd, with large amount of data Group 1 entities in S4 and visible in CM Group 2 entities in S4 and visible in CM	As Option C As Option C	IHB where majority of cash resides, will be in S4 and visible in CM Group 1 entities in S4 and visible in CM Group 2 entities in S4 and visible in CM	As Option E	As Option E	Low	Low	Med	Med	High	High	High
Efficient Management of IHB Exposures		IHB/PI1 to send exposure details to S4. Interim interface req'd.	As  Option A	As  Option A	As  Option A	IHB and TRM go-live in S4 together. In interim PI1 data would continue to go to Quantum. As-is to continue.	As Option E	As Option E	Low	Low	Low	Low	High	High	High
Efficient Management non-IHB Exposures		S4 TRM will replace Quantum in Group 1. New "interim" interface req'd to bring Group 2 entity exposure to S4	As  Option A	S4 TRM will replace Quantum in Group 2. All entities and exposures are is S4 in Group 2  New "interim" interface will be needed to send Group1 entity exposures from S4 to Quantum.	As  Option C	As  Option C	As  Option C	S4 TRM will replace Quantum in Group 3.  New "interim" interface will be needed to send Group1 & 2 entity exposures from S4 to Quantum.	Med	Med	Med	Med	Med	Med	Low
Ease of Accounting for Treasury Deals (from Header Entity)		TRM is S4.  Entity 2002 is in PF1. TRM posting to go from S4 to PI1.   New interim interface needed to send postings from S4 to PF1.	TRM is S4.  Entity 2002 is in S4. Std TRM will post automatically in S4.
Ease of Accounting for IHB entities (2232 & 4044).		IHB entity 2232 is in PI1.  2002 is in PF1 until Group 2  As-is current process posts PI1\2232 into PF1 2002. No new interface	IHB in 2232 in PI1.  2002 moved to S4 in Group 1  New interim interface required to post 2232\PI1 accounting into 2002\S4.	IHB entity 2232 is in PI1.  2002 is in PF1 until Group 2  As-is current process posts PI1\2232 into PF1 2002. No new interface	IHB in 2232 in PI1.  2002 moved to S4 in Group 1  New interim interface required to post 2232\PI1 accounting into 2002\S4.	IHB moves to S4 in Group 2 2002 moves to S4 in Group 2 As-is current process continues to send postings from PI1\2232 into PF1 2002 no new interface in the interim	IHB moves to S4 in Group 2 2002 moves to S4 in Group 1 As-is current process continues to send postings from PI1\2232 into PF1 2002 New interim interface req'd to send postings from PI1\2232 into 2002\S4	As Option E
Ability in implement and manage Intercompany Loans
Ability to perform Treasury transactions outside of central Treasury Entity
Ease of Cut-over at implementation	No extra cut-over for TRM  Extra cut-over for IHB	As Options A  As Option A	As Options A  As Option A	As Options A  As Option A	As Options A  As Option A	No extra cut-over for TRM No extra  cut-over for IHB	No extra cut-over for TRM No extra  cut-over for IHB	Extra cut-over for TRM  Extra cut-over for IHB
Indirect impact - Alignment with Consolidations Group Reporting
Indirect impact - Alignment with Intercompany Service Billing \ Recharges

See also

Change log